Today I’m joined by Chad Whistler whose been handling mortgages since 1998. In today’s short question and answer session, I’m asking Chad all about forbearance:
What is forbearance?
Forbearance is a temporary postponement of your current mortgage payment. Your lender has to approve of this so you can put your payments on hold until you’re able to afford them again.
Why might it be a good idea to get a forbearance on a mortgage?
If you’re struggling financially, forbearance gives you the chance to get back on track. The lender is required to allow it for up to six months, then extend it six months if needed so you have up to a year of postponed payments.
5.9 percent of mortgages across the country were in a state of delinquency per COreLogic
Is there a risk to forbearance?
The negative side is that you’re extending the time period of your loan. If you’re working toward paying off your loan, it could be an issue. Placing payments on hold means you may have trouble getting financing in the future. For example, if you want to sell your home and buy a new one, you might not get approved for a loan. If you’re in deferment, you cannot obtain a new mortgage.
To qualify for a new loan or refinance, you must be out of deferment and have had three on-time monthly payments in a row. The “rule of three” is crucial.
You should also know that some lenders require you to pay all your deferred payments at the end of your forbearance period in a lump sum. Speak to either Chad or me so we can guide you through matters of forbearance.
If you want to discuss your options for free, email Chad at [email protected] or call him directly at (248) 840-9559.
If you want to discuss forbearance or anything else with me or my team (also for free), give us a call at 866-696-8447. We’re here to add value and connect you with a top real estate agent anywhere in the world if you need them. We’d love to help with whatever you need.
If you’re thinking about selling your home and want more money from your sale in less time, reach out and give us a call. We’re here to help add value to your transaction.
Today I’m joined by Chad Whistler whose been handling mortgages since 1998. In today’s short question and answer session, I’m asking Chad all about forbearance:
What is forbearance?
Forbearance is a temporary postponement of your current mortgage payment. Your lender has to approve of this so you can put your payments on hold until you’re able to afford them again.
Why might it be a good idea to get a forbearance on a mortgage?
If you’re struggling financially, forbearance gives you the chance to get back on track. The lender is required to allow it for up to six months, then extend it six months if needed so you have up to a year of postponed payments.
Is there a risk to forbearance?
The negative side is that you’re extending the time period of your loan. If you’re working toward paying off your loan, it could be an issue. Placing payments on hold means you may have trouble getting financing in the future. For example, if you want to sell your home and buy a new one, you might not get approved for a loan. If you’re in deferment, you cannot obtain a new mortgage.
To qualify for a new loan or refinance, you must be out of deferment and have had three on-time monthly payments in a row. The “rule of three” is crucial.
You should also know that some lenders require you to pay all your deferred payments at the end of your forbearance period in a lump sum. Speak to either Chad or me so we can guide you through matters of forbearance.
If you want to discuss your options for free, email Chad at [email protected] or call him directly at (248) 840-9559.
If you want to discuss forbearance or anything else with me or my team (also for free), give us a call at 866-696-8447. We’re here to add value and connect you with a top real estate agent anywhere in the world if you need them. We’d love to help with whatever you need.
If you’re thinking about selling your home and want more money from your sale in less time, reach out and give us a call. We’re here to help add value to your transaction.